EL SEGUNDO – Shipments of small- and medium-sized panels – panels sized 1" to 9.x" – climbed slightly in June to 188.5 million units, up 1% sequentially, says IHS iSuppli. This marked the first sequential monthly increase since March.

Despite a small rise in shipments driven by demand for smartphones and tablets, the worldwide market for SMD panels is continuing to struggle with overall weak sales in the third quarter, the firm says.

“SMD panel shipments increased slightly in June because of continued strong demand among panel buyers for their smartphone and tablet lines, two products that remain popular among consumers,” said Vinita Jakhanwal, director for small and medium displays at IHS. “Panel buyers also are stocking up to keep inventories at reasonably adequate levels to meet demand for the third quarter and during the run-up to the holiday season. However, outside of the smartphone and tablet segments, the SMD panel market is being dogged by overall soft demand. Economic troubles in the US and European markets have dampened consumer appetite for many electronic items in which these panels are utilized, while a government crackdown on illegal handsets in China is stifling SMD demand there.”

Amid strong demand, pricing for SMD panels for tablets is remaining high. Tablet prices in the third quarter for 7" and 9.7" panels will average $53 and $65 respectively.

In contrast, prices are declining for SMDs used in digital still cameras and personal navigation devices, as demand decreases.

Among SMD panel manufacturers, fab utilization rates for the Taiwanese will average 61% in the third quarter, up from 55% at the end of June. Utilization rates are much higher among the Koreans, remaining at full capacity for LG Display and at 85% for Samsung Mobile Display.

SAN JOSE – California-based Presto Engineering said it would establish an Israeli branch to provide engineering services for high-tech printed circuit board firms. 

The Israeli branch will specialize in high-speed radio frequency PCBs, say published reports.

Moshe Zalcberg, former CEO of Cadence Israel, is heading up this effort, which involves opening a sales center and service lab that will focus mostly on Israeli startup firms in the late stages of product development.

Locations Herzliya and Zalcberg are currently hiring 15 employees.

Presto also has two facilities in France.

SAN JOSE – Electronics manufacturing services provider SMTC Corp. today said it has agreed to acquire the outstanding shares of EMS firm ZF Array Technology, with operations here and in China.

BANNOCKBURN, IL – North American printed circuit board shipments in July fell 12.1% year-over-year, says IPC. Orders decreased 16% compared to July 2010.